Knights of Honor v. Nairn

• Decision Date: 03 February 1886
• Court: Michigan Supreme Court
• Parties: KNIGHTS OF HONOR v. NAIRN.

26 N.W. 826

60 Mich. 44

KNIGHTS OF HONOR v. NAIRN.

Supreme Court of Michigan

February 3, 1886

Cross-appeals from St. Clair. Avery Bros. and James H. Brewster for defendant and appellant.

CAMPBELL, C.J.

Complainant filed a bill of interpleader to settle the contending claims of the two defendants to a sum of $2,000 under a member's benefit certificate issued to Harry Traver, now deceased, who was a member of one of the subordinate lodges of the association represented by complainant. It appears from the record that the order of which complainant is a corporate representative, or various associations connected with it became, at different times, incorporated in different states. It also appears that there is a general association to which the smaller bodies are said to conform, having local lodges incorporated and unincorporated. Just how far the special corporations in different states govern those elsewhere not incorporated does not fully appear, and is not material in the present case. We have no judicial knowledge beyond the record, and need not inquire.

In the present case, Traver appears to have been a member of a lodge at Port Huron, in this state, and the complainant, which is the body issuing the benefit certificate, and bound to pay it, is a corporation organized under the laws of Missouri. It is therefore, in all its contract relations, subject to the conditions imposed upon its corporate powers by those laws and no rules or conditions can be lawfully imposed, contrary to those laws, upon its corporate action by any private association. It can make no contracts forbidden by the laws of Missouri to such corporations; and, while the action of the unincorporated supreme lodge may be of more or less service in construing ambiguous arrangements not forbidden, it cannot in any way supersede the statutes. The benefit certificate, which is dated July 16, 1881, after reciting membership of Traver, and some other similar matters, and some conditions, concludes as follows: "The said supreme lodge hereby agrees to pay out of the widows' and orphans' benefit fund, to his sister, Mrs. F.F. Richardson, the sum of two thousand dollars, in accordance with and under the laws governing this order, upon satisfactory evidence of the death of said member, and the surrender of this certificate: provided, that this certificate shall not have been surrendered by said member or canceled at his request, and another certificate have been issued in accordance with the laws of this order." On the back of this certificate was a printed form: "I hereby surrender to the Supreme Lodge, Knights of Honor, the within benefit certificate, and direct that a new one be issued to me, payable to ______, [signed] ______. Attest:______ [Lodge Seal.] ______ Reporter." Upon the certificate in controversy this blank was dated March 25, 1884, signed by Harry Traver, made payable to "George K. Nairn, in trust," but not signed or attested by the lodge "reporter," or by any one.

Defendant Nairn claims that by virtue of this indorsement the fund belongs to him. Defendant Mrs. Richardson claims that nothing has been legally done to divest her of the benefits promised to her by the certificate. Nairn claims that Traver was an army comrade and intimate friend, who had lived at his house several years, and became hopelessly ill from some injury in the early part of 1884, which interfered with his doing any considerable share of business, and in October, 1884, he went to Ypsilanti for medical treatment, where he was under the care of an aunt and other near relatives and family connections, one of whom was a physician. He died at Ypsilanti in December, 1884. Nairn testifies that, while going to Ypsilanti, Traver told him he had placed a transfer of the certificate, with other papers, in an envelope which he had left in a bureau drawer in his room at Nairn's, and wished him to do according to the instructions which he would find there. It does not appear very clearly when Nairn first looked at this envelope, but it was sealed, and contained on the outside, in black ink, "H. Traver;" and in blue pencil mark, "For Geo. Nairn, in case of my death." After Traver's death, it was opened by Nairn, in presence of some of Traver's relatives, and it then contained the certificate indorsed, as before stated, as of March 25, 1884, and a letter of the same date, as follows:

"PORT HURON, March 25, 1884.

"Reporter of Integrity Lodge, Knights of Honor--SIR: I desire to have the beneficiary in my certificate of membership changed from Mrs. F.T. Richardson to George K. Nairn, in trust; and in the event of my death two thousand dollars to be paid to him. HARRY TRAVER."

There was also a letter in blue pencil, dated June 24, 1884 directed to Nairn, and indorsed, "Geo. K. Nairn, in case of my death," the purport of which was a request to have his affairs straightened, pay a list of debts inclosed of about $359, and funeral expenses, and apply balance as directed in memoranda. The remainder of the letter explained his business matters and some other things. There was also a life insurance policy for $500 on the life of Mrs. Richardson, which he requested to have kept for her son. Also a letter dated October 15, 1884, (which was the date of his going to Ypsilanti,) addressed jointly to his sister and aunt, requesting them, in case of his death, to confer and consult...